melvinmel Posted April 3, 2008 Share Posted April 3, 2008 hi guys. i need some explaination on one quiestion. "Why are we assured that when the money and products markets are in equilibrium, the bond market will also in equilibrium?" i hope anybody can explain to me deeply. thanks you:grad: Quote Link to comment Share on other sites More sharing options...
pevdoki1 Posted April 3, 2008 Share Posted April 3, 2008 If you assume that you're in a closed economy and that the labor market is also in equilibrium, then you can use Walras' Law (i.e. if 3/4 markets are in equilibrium, then so is the fourth one) Quote Link to comment Share on other sites More sharing options...
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